2 years after fatal fire which left 7 dead, Montreal tightens rules on short-term rentals

Montreal Tightens Short-Term Rental Regulations to Address Housing Crisis

In an effort to alleviate the ongoing housing crisis, Montreal has implemented stricter regulations on short-term rentals, particularly those listed on platforms like Airbnb. The city council recently passed a new bylaw that restricts short-term rentals to the period between June 10 and September 10. This move comes two years after a tragic fire in Old Montreal claimed the lives of seven individuals, where the building in question was operating illegal short-term rentals through Airbnb. This incident underscored the urgent need for regulatory oversight in the short-term rental market.

Background and Context

The fatal fire in Old Montreal served as a catalyst for Quebec to take action against illegal short-term rentals. Despite these efforts, the city reported in January that over half of the 4,000 units listed on short-term rental platforms were operating illegally. This non-compliance highlighted the challenges in enforcing existing regulations and the need for more stringent measures to ensure compliance and public safety.

New Bylaw Provisions

The newly adopted bylaw introduces specific restrictions on when short-term rentals are permitted. Property owners are now only allowed to rent their homes for short stays during the summer months, from June 10 to September 10. This restriction aims to increase the availability of long-term housing options, which are in high demand due to the city’s housing crisis. Additionally, the bylaw grants inspectors the authority to issue significant fines to non-compliant listings. Those operating outside the permitted season can face daily fines of $1,000, while repeat offenders may incur penalties of $2,000 per day.

Reactions to the Bylaw

The introduction of these stricter regulations has sparked debate among stakeholders. While the city views the bylaw as a necessary step to address the housing shortage, Airbnb has expressed concerns about the potential impact on Montreal’s tourism industry. The platform argues that short-term rentals have a minimal effect on housing availability and that the new restrictions could harm the local economy by reducing tourism revenue. This criticism highlights the tension between addressing housing needs and maintaining a vibrant tourism sector.

Implications and Future Outlook

The enforcement of this bylaw will be closely monitored to assess its effectiveness in reducing illegal short-term rentals and increasing the availability of long-term housing. If successful, it could serve as a model for other cities facing similar challenges. However, the opposition from Airbnb and potential pushback from property owners may present challenges in achieving full compliance. Balancing the needs of residents, property owners, and the tourism industry will be crucial in the months ahead.

Conclusion

Montreal’s decision to impose stricter regulations on short-term rentals reflects the city’s commitment to addressing its housing crisis. While the new bylaw aims to prioritize long-term housing availability, it also raises important questions about the impact on tourism and the broader economy. As the city moves forward with these changes, it will be essential to evaluate their effectiveness and make adjustments as needed to ensure a balanced approach that benefits all stakeholders.